New vs. Old Tax Regime Guide 2026: Which Saves More Money?

# New vs. Old Tax Regime: Making the Right Financial Decision Choosing between the **Old Tax Regime** and the **New Tax Regime** is one of the most critical tax decisions for Indian taxpayers. ## Key Slabs under the New Tax Regime - Up to ₹3,00,000: Nil - ₹3,00,001 to ₹7,00,000: 5% - ₹7,00,001 to ₹10,00,000: 10% - ₹10,00,001 to ₹12,00,000: 15% - ₹12,00,001 to ₹15,00,000: 20% - Above ₹15,00,000: 30% ## Standard Deduction Benefit Salaried employees get a standard deduction of **₹75,000** under the New Tax Regime, making income up to **₹7.75 Lakhs tax-free** (with Section 87A rebate). ## When is the Old Tax Regime Better? If your total deductions (80C + 80D + HRA + Home Loan Interest 24B) exceed **₹3.75 Lakhs**, the Old Tax Regime usually yields lower tax outgo.